UK rules against Akzo Nobel/Metlac deal

LONDON

LONDON Dec 21 Britain's competition regulator
has blocked the proposed acquisition by Akzo Nobel NV
of Metlac Holding, ruling it would substantially reduce
competition in the supply of metal packaging coatings for beer
and beverage cans in the UK.

The ruling on Friday confirms the Competition Commission's
(CC) provisional finding in relation to this market, published
in September.

In relation to the market for the supply of coatings for
food, caps and closures and general line metal packaging the CC
did not find that the merger may be expected to result in a
substantial lessening of competition.

That was a departure from its provisional finding and
followed more detailed analysis of competition in this market in
the UK.

AkzoNobel has an existing stake of 49 percent in Metlac
Holding. The remaining 51 percent is owned by members of the
Bocchio family.

"The CC has found that the only remedy likely to be
effective in addressing the substantial lessening of competition
is prohibition of the transaction," it said.